What is the 'Transfer Review Fee' for a Bhc franchise assignment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must pay a non-refundable "Transfer Review Fee" of $5,000 when transferring or assigning their franchise. However, the FDD also states that the fee could be greater than $5,000 if Bhc's out-of-pocket costs associated with the transfer/assignment, including attorney's fees, exceed that amount.
This fee is in addition to other conditions that Bhc may impose before consenting to the transfer. These conditions include the assignee completing a franchise application, demonstrating the necessary skills and resources, and assuming all of the franchisee's obligations under the franchise agreement. Bhc must notify the franchisee of approval or disapproval of the proposed assignment within 60 days of receiving all necessary information.
It is important to note that this Transfer Review Fee differs from the Transfer Fee, which is 100% of the then-current Initial Franchise Fee. The Transfer Fee is not applicable in certain transfer scenarios, such as transfers to heirs or personal representatives, but the Transfer Review Fee still applies in those cases. Franchisees should carefully consider these costs and conditions when planning to sell or transfer their Bhc franchise.